Hubspot Case Study

Which is the right customer segment for HubSpot to target? Why?

Considering the facts of the case, comparing the segments,

B2B B2C Owner Ollies Marketer Marys

Advantages Disadvantages Advantages Disadvantages Advantages Disadvantages Advantages Disadvantages

Higher % (68%) of customers.

Lower churn rates (3.3%) per month

Simpler requirements, greater dependence on training and support services.

Selling complex products & services to customers who purchased through complex multistage buying processes requiring customer education, implying greater share of wallet per customer. Derive greater value from lead qualification analysis of HubSpot. Less sophisticated users requiring support and attention for longer time throughout their lives as customers Highly sophisticated web 2.0 users, already having high performing websites and strong social media presence, and prior experience with web 2.0 consultants / agencies

Lower % (32%)

Of customers.

Higher churn rates (6.0%) per month. Derive lesser value from HubSpot offerings. Due to prior exposure to web 2.0 consultants/ agencies, higher openness to competitor offerings.

Find HubSpot’s templates too rudimentary for their needs Higher % (73%)

Of HubSpot customers. Lower cost of acquisition (1000$) per customer.

Due to time constraint, less inclined to seek alternative competing products / services for comparison.

Seek quick, simple solutions and willing to pay for training support. Higher autonomy leading to speedier decision making and hence shorter selling cycle. Compelled by resource constraint of time and money to aim for short term objectives of generating more leads in the business and feeding top of their consumer funnels. Tend to cancel subscriptions early once short term objectives achieved, leading to higher average churn rate of 4.3% hence lower customer lifetime value.

Unstable Business Models which may fail them in a recessionary phase. More educated about web2.0, seeking to fulfil long term objectives like running programs, evaluating results, justifying R.O.I to senior management. Greater number of inbound programs, leading to greater usage of higher value tools for analytics and reports., and hence more spend per customer. Higher budgets to spend.

Overall, highest customer lifetime value.

Lower % (27%)

Of customers.

Higher cost of acquisition (5000$) per customer. Require more sophisticated